Cuomo Details Major Shift of NY Tax Code to Avert Federal Act

Gov. Andrew M. Cuomo (D) proposed a dramatic shift in New York’s tax code today by creating an employer-based payroll tax to alleviate the impact of the federal cap on the deduction for state and local taxes.

Cuomo, in his proposed budget for fiscal year 2019, also called for creating two charitable funds through which New Yorkers could pay for the state’s education and health care needs. The contributions, which would be federally deductible, would be eligible for a state tax credit.

Cuomo said the steps were needed for the state to avoid a “missile” headed its way from the ...